Selling Books Today: Nickels, Dimes and Pennies

June 19th, 2009

stacks-pennies-nickels-dimesThese days, book selling can be a game of nickels, dimes and pennies. The difference of a few cents should matter to you, because all that is all it takes to see your margins skewered. Books are selling for less, and costing more.

We’ve seen three postal rate increases, in May 2008, January 2009 and May 2009, with no change in Amazon’s shipping rates. We still get only $2.65 to cover cost of shipping, which includes :

• Postage
• Tracking
• Shipping materials

All together, shipping can actually cost you:

• $2.78 for 1 lb
• $2.77 for 2 lbs
• $3.16 for 3 lbs

Are you beginning to see the problem?

I sell 1000 books per day. My main challenge is postage. With all the rate increases on the commercial side, we’ve seen rates go Read the rest of this entry »

A Book Buyer's Secret: Finding Used Books

June 19th, 2009

In a previous post I laid out a few good sources for finding used books to sell online. While library sales, thrift stores, etc are good resources, the truth is that I can’t tell you where you’re going to find books. Books are all around us. They are on shelves and in drawers, forgotten in attics and garages, and boxed up in storage units. I can’t tell you when you’re going to find books.

Finding books, to a certain degree, is about who you know. Just about everyone you know is a potential source of books.
I have known neighbors, past co-workers, teachers, relatives, people from all walks of life who have turned out to be unexpectedly good sources of books. You might know someone looking to pare down their collection, someone who’s job gives them access to used books, or someone who’s inherited books they don’t know what to do with. Use your existing network, talk to the people in your life, and you just might be surprised where you find books.

I once met some people at the Penske truck rental counter. I didn’t know them, they didn’t know me, but we got to talking and I ended up finding out that they had some books they wanted to get rid of. As it turned out, they didn’t have a lot of books, but the books the did have were valuable.

If you take the time to talk to people, you can find and get to know the people who have the books, and find the books that the people you already know have. This can be a valuable thing indeed.

How I Lost My Virginity

June 18th, 2009

Everybody remembers their first time. The nerves, the uncertainty, the thrill.

I’m talking about selling your first book online, of course. What did you think?

For me, it was a book called “Inheritance of Coat Colour in Dogs” that I picked up for 25¢. I turned around and sold it on Ebay for $44. This was back in 1999. Of course the guy who bought it from me was a book seller himself, and re-listed it almost immediately for double what he’d paid me. But hey, I was just a newbie back then. Live and learn right?

There’s a less rare version with an Americanized “color” spelling, but the only copy of the exact book that I could track down with a quick internet search is currently listed on AbeBooks for $360.

This wasn’t technically the first the first book I’d ever sold online. I had sold some of my personal books before, but I consider this one my “first” because it was the first one I had bought specifically because I thought I could make a profit selling it online.

What about you? Do you remember your first time? How did you lose your bookselling “virginity”?

The Book Lover’s Moral Dilemma

June 18th, 2009

Decisions decisionsSo I’ve posted about a couple of book selling related “in the news” type articles, like this one and this one. So far those posts have pretty much been about up-to-the-minute, breaking news from articles published on that day.This post is going to be a little different. While surfing the ‘net, I ran across a New York Times article that ran a few months ago, back in December of 2008. It’s an article by David Streitfeld called “Bargain Hunting for Books, and Feeling Sheepish About It “.

Mr. Streitfeld is a lover of books. Like many other lovers of books, he worries about the fate of authors, publishers and traditional brick-and-mortar booksellers. Many in publishing have been projecting a bleak outlook, pointing to the rise in online bookselling as the cause of the publishing industry’s woes. The issue, as Steitfeld sees it, “is not the absence of casual readers but the changing habits of devoted readers.”

What is a lover of books to do? The choice between supporting the authors, bookstores and publishing industry on the one hand, and buying books online at low prices on the other turns out to be no choice at all, especially in this economy. As Mr. Streitfeld puts it, “In theory, I want to support all of these fine folks. In practice, I decide to save a buck.”

Should book lovers like Mr. Streitfeld be ashamed of their decision? Are they, as online book buyers (not to mention us, as online book sellers), guilty of putting economics before ethics?

The truth is, it’s not a choice between a moral right and a moral wrong. It’s actually a decision between two different kinds of Read the rest of this entry »

Goodwill To Sell Books Online?

June 17th, 2009

goodwillAccording to an article posted today on thedenverchannel.com (the website of ABC’s Denver, Colorado affiliate), Goodwill is currently trying to overhaul their image. This includes stocking more high-end, brand name merchandise, as well as giving the stores themselves makeovers. The idea is to bring Goodwill stores more in line with other retail stores and to distance themselves with the low-end reputation of traditional thrift stores.

The article quotes Rick Berninzoni, the vice president of marketing for Goodwill Denver, as saying that along with the other changes, Goodwill is moving into selling items online, specifically mentioning that Berninzoni “hopes to soon sell books online.”

Goodwill already operates their own online auctions at shopgoodwill.com, where buyers can bid on items in a process similar to Ebay’s. However, this change in focus may mean that Goodwill will be placing an increased emphasis on determining the value of their books, and could result in a lot more of them being listed online, either through their existing auction site, or through some new channel.

I have mentioned the value of thrift stores as a good source for books to sell online. How that fact is affected by these changes at Goodwill remains to be seen.

It is possible that, at least in the case of Goodwill, the books with the greatest resale potential will be cherry-picked for sale online and will no longer be on the shelves of their stores. It is also possible that some of the other large thrift store chains may follow suit.

It’s too early to tell what will come of all this, but it’s definitely something that’s worth keeping your eye on.

More Tips for Selling Books on Amazon

June 17th, 2009

Selling books online these days means knowing how to sell on Amazon. I’d estimate they’ve got about 70% share of the market for online used book selling. If you want to give yourself the best chance for success, you need to know the ins and outs of the different marketplaces, especially Amazon. A lot of newbie booksellers start out having only ever sold on Ebay. Get ready to repeat after me, because here comes today’s mantra:

Selling on Amazon is not the same as selling on Ebay.

Learn it, love it, live it.

As I’ve discussed in a previous post, Amazon is a stickler for their rules. It’s easy to understand why, once you realize that, unlike Ebay for instance, they are on the hook to the customer should anything go wrong. I’ve said it before, and I’ll say it again: know the rules. It’ll save you from having to deal with headaches and consequenses up to and including losing your Amazon account.

Here’s a few ways that Amazon is different than Ebay:

Multiple Accounts

On Ebay, a lot of people will recommend that you have different accounts for different things. Ebay doesn’t care how many accounts you have. You can have as many accounts as you can open free checking accounts and email addresses. As far as Ebay is concerned, you can have an account for every day of the month and another one for holidays and special occasions. Amazon is different. You cannot have more than one Marketplace Seller account. Not only do they have a policy against multiple accounts, they actually check. They have several ways of trying to find people skirting this rule, and if you get caught, you could be looking at being permanently banned from Amazon.

That being said, you may see some sellers that do have more than one account. There are some megasellers who get exceptions to the rules. This doesn’t mean you can do it. They have special approval from Amazon. You don’t. Often times these different accounts represent separate locations, separate operations, completely different segments of a corporate structure, etc. The point is, it doesn’t apply to you.

Returns

On Ebay, you’re the selling company and you get to set up whatever kind of return policy you want. A better return policy may make you more successful, but ultimately it’s up to you. Once again, Amazon is different. Amazon considers you to be little more than a dropshipper. From their point of view, they are the public face, the company, and they will set the return policy. Read the rules here. The bottom line is that you’re probably going to have to take any returns made within 30 days. You’re free to take returns beyond that 30-day window, if you so choose, but you cannot have a shorter return window. Personally, I’ve been contacted by Amazon to issue a return on a sale that was 40 days old. I refunded the order. It’s just not worth it to take on Amazon on these issues. Don’t take my word for it though, read and learn the rules in their entirety for yourself.

Blocking Buyers

You can’t. On Ebay you can create “blocked bidder” lists to weed out any undesirables. Not on Amazon. As long as their money is green, Amazon wants them as a customer. This goes for anyone who’s considered a “domestic” customer, including APO/AFO, Hawaii, Alaska, Puerto Rico and Guam. You can opt not to ship internationally, but that’s about it. Some sellers that specialize in selling used textbooks complain that certain buyers are actually other sellers who turn around and resell their books to students or textbook stores. Well, tough. There’s no way to block any buyer from buying any book. And as far as I’m concerned, if someone is reselling the books you’re selling, there’s no point in getting mad at them. It’s your own fault for pricing your books to low.

Anyway, these are just a few of the differences between selling on Ebay and selling on Amazon. As always feel free to ask me any questions you might have, and I’ll try and answer them in a future post.

A Library That Operates Its Own Used Bookstore

June 16th, 2009

I had just put up a post that dealt with Library Sales when I ran across this article about a library in Waterloo, Iowa that just opened its own bookstore.

The article, written by John Molseed, is from the WCF Courier out of Waterloo/Cedar Falls Iowa. Apparently, in addition to holding regular sales, the Waterloo Friends of Library had sold donated books at a counter inside the library itself. However as donations outpaced what they could handle, they decided to open an entire bookstore which they call the Book Review (re-view, get it?).

It’s an interesting idea, one that allows the library to fundraise year-round instead of relying only on their annual sales. I’ve heard of other libraries who dabble in the year-round used books business before, but never on quite this scale. By all accounts it’s doing very well so far. If it is ultimately a success, this may be something we see more libraries getting involved in. If so, it’s not quite clear what the effect on us as online booksellers would be, but it sure is an intriguing concept.

What do you think? Are we going to be seeing more libraries opening used bookstores? What does that mean for library sales and for finding used books in general?

The Ethics of Bookselling

June 16th, 2009

As I’ve said before, finding books to build and maintain your inventory is one of the most important keys to being successful at selling used books online. Finding books is getting more and more competitive every day. The pressure to get to the books first, combined with people’s desire to make money has led some booksellers into some ethically gray areas.

Let me just start out by saying that I am in no way condoning, endorsing or recommending any of the methods I’m going to be talking about. That being said, I have also heard some fairly convincing arguments from those who contend that using, shall we say, “unconventional” methods is actually justified in many ways.

In any case, you don’t have to go any further than your local thrift store to see what I’m talking about. It’s not uncommon for booksellers to engage in pay-offs, $20 “tips”, even bringing around donuts or food, anything to ingratiate themselves and allow them to get first crack at incoming books.

But granddaddy of these ethically questionable methods involves our old friend the library sale.

As I mentioned in a previous post, library sales (sometimes called Friends of Library sales) are a great source for finding used books to sell online. I also briefly touched on the practice of booksellers “volunteering” at library sales.

This is exactly the practice that raises what I think is the most interesting philosophical question of bookselling:

Is it ethical for booksellers to “volunteer” at library sales in order to increase their own profits?

You may notice that I’m repeatedly putting the word “volunteer” in quotations. Before we go any further, let’s take a quick look at the definition of the word “volunteer”.

Volunteer:
vol·un·teer
Pronunciation: \ˌvä-lən-ˈtir\
Function: noun
Etymology: obsolete French voluntaire (now volontaire), from voluntaire, adjective, voluntary, from Old French, from Latin voluntarius
Date: circa 1600

1: a person who voluntarily undertakes or expresses a willingness to undertake a service: as
a: one who enters into military service voluntarily
b: (1): one who renders a service or takes part in a transaction while having no legal concern or interest (2): one who receives a conveyance or transfer of property without giving valuable consideration
2: a volunteer plant
3: capitalized [Volunteers of America] : a member of a quasi-military religious and philanthropic organization founded in 1896 by Commander and Mrs. Ballington Booth

- Merriam-Webster Online Dictionary

If we sift through the portions about joining the military, plants and religious organizations, the part that’s relevant to what we’re talking about is that one that reads: “one who renders a service or takes part in a transaction while having no legal concern or interest”. Of course, any bookseller who renders their services to a library sale has a very real financial concern and interest, which is why I hesitate to call them volunteers at all.

It usually works like this: If I’m a bookseller who wants to get first crack at library sale books, so I volunteer to work the sale. I get to go through the books before the general public and buy whatever books I want. Perhaps the most surprising thing of all is that most libraries know this goes on and don’t think anything of it. They just consider it a perk that goes comes with volunteering, and if I as a “volunteer”/bookseller happen to be able to make money off the books I get, well, good for me.

It sounds ethically questionable at best, but there’s also a way to look at it as a win-win. The library gets free labor to help sell books and raise funds, and the bookseller gets to make some money on the side.

A more recent wrinkle is that some of the more savvy libraries are hiring booksellers to sell their books online on behalf of the library. For their trouble, the booksellers of course get a percentage of the sales. Again, the bookseller is making money through what is supposedly a purely charitable fundraiser. On the other hand, the expertise of the bookseller allows the library to maximize their profits, getting much more for their books than they would be able to otherwise. Libraries and library societies tend to be lovers of books, but not necessarily experts on book pricing. Without the help of the booksellers they probably wouldn’t know, in monetary terms anyway, what they had.

It’s a tricky subject. Arguments can really be made for or against it. What do you think? Is the practice of “volunteering” at library sales ethical if it’s done to fatten your own wallet?

Storing Your Books: Organization

June 15th, 2009

Being a bookseller means wearing a number of different hats. One of the roles you have to play, a role that you might not have considered when you got into the business, is that of a warehouse coordinator. After deciding on a shelving option, you need to decide how you are going to organize your growing inventory.

The most basic system is to simply use the SKU (stock keeping unit) that you use in your Amazon listings. Of course, if you don’t have a Pro Merchant account, you don’t even get a SKU field. In that case you should just include it in the description.

The other system is to use both the SKU & location. This is a much better option, in my opinion.

Number your rows, starting with zero, and use that numeral to indicate the location of the book.

You can make the location as elaborate and detailed as you want, having numbers to indicate the room, section, shelf, bin, even a particular position in a bin.

This is just a quick post. After all, creating a system to organize and quickly locate your books may seem like a simple and common-sense part of online bookselling. However, it’s worth mentioning because it’s so important.

I know of a bookseller, an engineer by trade, who is supremely disorganized. He can never find the books he needs. He always gets poor ratings. Despite all the trouble it causes him, he hasn’t changed his ways. Learn from his mistakes. Take the time to set up a good organizational system. It will save you countless hours of headaches and stress.

Do you have a organizational system that works great for you? I’d love to hear about it.

Sell Books Blog Guide to Customer Service (part 3 of 3)

June 15th, 2009

You just wanted to make a few bucks selling used books online. It all seemed so simple and straightforward until you ran into the one thing you didn’t count on: dealing with customers. Now that we’ve talked about difficult customers and scammers, you may be feeling pretty vulnerable. Can a disgruntled customer damage your business by bringing down your seller rating? Can a spurned scammer exact his revenge by destroying your ability to create repeat business?

Calm down, take a deep breath and repeat after me:
“When it comes to selling on Amazon, there is no such thing as repeat business.”

That’s right. Oh sure, it happens occasionally, you’ll get an order from a customer you’ve sold to before. It’s usually by accident as much as anything else. But in practice, repeat business just doesn’t happen. Customers just have too much choice, they have too many options. Think about how the customer finds used books on Amazon. They search for the book they’re looking for and see who’s selling it. They don’t try and look up sellers they’ve used before, attempting to see if that seller happens to be selling anything they might want to buy. I’ve said it before, Amazon goes out of it’s way to try and make you as the seller invisible to the customer, and that’s just fine. Just be realistic. If you want to build repeat business, get your own website. If you’re trying to build a loyal customer base on Amazon, you’re wasting your time and effort.

So what does set you apart as a seller? It’s gotta be your seller rating right?

Wrong.

Hold on, let me back up for a second. The importance of your rating/feedback does vary from marketplace to marketplace, but let’s start by taking a look at Amazon.

There’s a percentage of customers who will look at your feedback and rating. However, in my experience they tend to be fairly lenient. On Amazon, a rating of 4.5 out of 5 stars is considered good. It sure sounds good, right? But let’s think about that. 4.5 out of 5 means that a full 10% of your feedback was neutral or negative. 10%! In my opinion that makes you a pretty poor seller. Unless you are seriously messing up, you should have no problem maintaining a “good” Amazon seller rating.

Then there’s a whole other segment of Amazon buyers who don’t care about your rating at all. These are the customers who are just looking for the lowest priced seller and don’t look at anything else. These are the same buyers who purchase books that are clearly listed as “acceptable”, thinking that they are going to get new books. Whether it’s by virtue of ignorance or apathy, they just don’t pay attention to anything but price.

Ebay is another animal altogether. Ebay evolved in a completely different way. Because Ebay’s transactions weren’t and aren’t backed up by a big company the way Amazon’s are. That’s why Ebay developed much more of a community component; it was necessarily built on trust from it’s inception. As a result, its rating system is better at assessing sellers performance. There is also more of a tendency to look at feedback than there is on Amazon. On the other hand, it’s a much worse place to try and sell books these days.

Half.com is more like Amazon. Again you’ll find that buyers here are usually just looking for the lowest price.

Other marketplaces like Alibris and AbeBooks rate you as a seller based solely on your fulfillment percentage. However as you move into dealing in high volume, a lower fulfillment is just part of doing business.

Feedback and ratings are something to be aware of, but don’t lie awake at night worrying about it. If you’re generally doing the right thing, you’ll be just fine.